Financial stress can definitely keep you up at night. If we could go back in time, I’m sure we’d all make a few different decisions when it comes to our money. You’ve probably learned a good bit from the money mistakes that you’ve made and I’m sure you would rather your kids take an easier path to retirement. Here are three ways you can teach your children to be more financially responsible…
Allow them to earn some cash: You can’t really learn a lot about money if you don’t have any. You also shouldn’t just give your kids money for no reason. An allowance is a great way to teach children how the real world works. Let them figure out that money doesn’t grow on trees and that you have to do something in exchange for a pay day.
Make them start saving early: If you let your kids spend their allowance freely, you won’t be doing them any favors. Show them how to save their money for the things that really matter. Talk to them about retirement and tell them how they’ll need to prepare one day. Establish savings goals for your kids and reward them for saving each month by giving them a little extra if they reach their goals.
Give them freedom to spend: Everybody wants stuff, and that includes your kids. Teach them about making responsible purchases and let them spend their money on things that make sense. Not only will they get the thing they want, but they’ll learn a little something about spending, saving, and budgeting.